Quantifying the cost

rebuilding costs

Andrew Thompson

INTERNATIONAL DEVELOPMENT DIRECTOR BCIS

Why is it that home insurance providers appear to deliver little or no precise information about property rebuilding costs at the point of sale, yet have these details at their fingertips when the claim arrives? Andrew Thompson of BCIS explores the thorny issue of accurate rebuilding calculations, and how practical tools can deliver customer value, broker differentiation, and mitigate risk

I

t’s never been easy for brokers to find genuine ways to

differentiate their product offerings in a saturated marketplace. The gloomy economic climate shows no immediate sign of lifting and therefore major capital investment is not an option for many broker organisations trying to gain competitive edge.

Customers are also feeling the pinch and looking to curb spending. As a result, they are

14 insurancepeople APRIL 2010

increasingly making purchase decisions driven more by cost than value, and running the risk that at point of claim they may not have adequate cover.

So how can brokers stand-out from the insurance aggregators and direct insurers? Brokerages can offer their customers a much more solutions-oriented relationship, so taking the emphasis off price, enhancing the overall customer experience and

increasing customer retention. Those brokerages that

illustrate that they understand their customers’ individual needs and deliver appropriate and cost effective insurance cover will help themselves to find competitive advantage - whilst ensuring they meet TCF guidelines.

One area where brokers can offer genuine cost efficiencies to customers is around the thorny issue of rebuilding cost

calculations. Where homeowners cannot provide the rebuilding cost of their home (or the floor area to allow the cost to be calculated), they have had no option but to go for a bedroom rated buildings policy offering a capped or unlimited sum insured.

Whilst bedroom rated policies can be cost effective, homeowners are missing out on the possibility of a lower priced sum insured based policy. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36